An Increase in the Number of Producers of a Good

question 147

Multiple Choice

An increase in the number of producers of a good will

• A)increase the market supply because the price will rise
• B)increase the market supply only if market demand increases too
• C)increase the market supply because market supply is the sum of all individual supply curves
• D)increase the market supply only if all suppliers have an identical supply curves
• E)decrease the market supply because firms compete with each other and each firm will supply more

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Definitions:

Private Consumptions

Refers to the spending on goods and services by individuals or households rather than by the government or businesses.

Total Amount

The entire sum or quantity of something, often referring to a final total in financial contexts.

Utility Function

A numerical depiction of the ranking of a consumer's preferences among various products or results.

Private Consumptions

Expenditure by households and non-profit institutions serving households on goods and services used for individual consumption.